December 21, 2022 (MLN): The Honorable High Court of Sindh (SHC) on Tuesday ordered status quo in the Ecopack Limited (PSX: ECOP) case till further orders.
Earlier, the Chief Executive Officer (CEO) of the company, Mr. Hussain Jamil filed a Suit in the SHC against an attempt to accumulate more than 30% shareholding within a day through a transaction.
“Learned counsel submits that on the strength of accumulation of more than 30% shareholding on one day through a transaction, an attempt has been made to circumvent and also to remove the Chief Executive officer of the company in hast in complete violation of the Memorandum & Articles of Association of the company,” the order stated.
Unless the defendants have a majority and/or by way of the special resolution, such action cannot be taken; this would amount to circumventing the lawful appointment of the plaintiff by restricting him for a period of three months in terms of the proposed resolution.
To note, it was one of the Agenda Items in the 120th meeting of the Board of Directors yet to be approved.
“Let notice in this regard be to the defendants for a date to be fixed after two weeks. In the meantime status quo to be maintained,” the order read.
